Indian stock markets went through a roller coaster ride on Tuesday, the 6th. While volatility was very high, the benchmark indices of Sensex and Nifty ended the day flat. Mixed global cues, rate worries, and corporate earning performances kept investors away from making any major bets the whole day.
Moves in Indices and Sectoral Trends
By the closing bell, the Sensex was down by 55.43 points at 73,945.18, while the Nifty barely turned positive by 10.20 points to close at 22,465.15. The day started in a jubilant mood but soon turned excessively volatile as investors resumed activities with earnings reports and global macroeconomic cues in hand.
It was a mixed bag in the sectors. IT counters saw buying interest, gaining for a change after several straight down days á la Infosys and TCS. Banking and financial services, however, witnessed selling pressure, with HDFC Bank and ICICI Bank at the forefront. The others, such as auto and pharma, remained on the upside supported by good sales data and steady Q4 earnings.
Top Gainers and Losers
Adani Enterprises, TCS, Infosys, and Sun Pharma were among the top gainers from the Nifty, rising 1.5-2.5% each. Adani group stocks came into renewed focus for purchases after a report stating a possible easing in regulatory scrutiny was floated in the media.
On the contrary, the major underperformers consisted of Axis Bank, HDFC Bank, Bajaj Finance, and Titan. Banking stocks underperformed due to headwinds posed by credit growth and a possible upward thrust in interest rates by the Reserve Bank of India in its ensuing policy meeting.
Market Sentiment and Global Factors
Investors stuck to a cautious stance amid uncertain global events. The Asian peers closed in a mixed bag, with China witnessing a marginal uptrend in its Shanghai Composite and Japan ending the session in the red.
The Indian markets got influenced by the downtrend of flat halvings in US markets in the previous session, owing to fresh concerns on inflation and a hawkish tone from the Federal Reserve.
Keeping on with economic indicators, India Services PMI for April stood in favourable territory even while there was slower movement as that in March, indicating some measure of resilience in the sector in the face of inflationary pressures.
Outlook Forward
The market is expected to continue consolidating in the short term because of a shortage of strong domestic catalysts. Market direction in the next few days will probably be driven by the upcoming RBI monetary policy announcement and international inflation figures. Further quarterly results from important index leaders are also being watched by investors, which might inject volatility.
Conclusion
May 6, 2025, was a characteristic consolidation day for Indian equities, where the indices alternated between gaining and losing ground. Although individual sectors were resilient, overall wariness was present given macroeconomic fears globally. Investors should be prudent to continue maintaining a well-balanced portfolio and watch for more data leading up to stronger market signals.
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